Introducing a cryptocurrency backed by African states: cause and effect

Abstract:

This paper theorised an African cryptocurrency termed Afro-Pesa that is backed by gold and supported by African States. The cryptocurrency was envisaged to operate on an Ethereum like, open source public blockchain network and replace the US Dollar as the base currency for Intra-Africa trade. Qualitative research was used to interrogate the possible effects of introducing the hybrid monetary framework that includes the use of a continental cryptocurrency and government issued fiat currency. The paper demonstrated that launching Afro-Pesa would have some effect in improving economic growth, enhancing the stability of the African financial system, lowering transactional costs, lowering currency risk, improving currency liquidity, and improving intra-Africa trade. Indirect effects include increased political integration and a low level of convergence of various national business cycles in Africa. Essentially, this paper introduces a new hybrid exchange rate regime for African States aided by cryptoeconomics

Description:

A research article submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfillment of the requirements for the degree of Master of Business Administration
Johannesburg, 2018